Position of India in the mind of Investors

Investors’ sentiment is changed towards the investment in India because of the Indian governments’ decision regarding the economic reform such as hike in diesel price; FDI in retail, aviation & power; disinvestment in state owned companies and due to quantitative easing measures in the US. Indian government is also planning to do some major policy reform regarding the coal, power & insurance sector in the month of October.

RBI, the regulatory authority of the banking sector in India has decreased the CRR, Cash reserve ratio by 25 bps and keeping the key rates unchanged to control the inflation of the country.

Investors’ sentiment is positive towards India in comparison to other countries because of the positive signal from the government to push the growth of the country. Now, FII investment is also increased in the country because of the expectation of better return from the market.

Because of the FDI in retail and for the hike in the diesel price, the government is facing a lot of hurdle from the opposition parties. But I think opposition parties should have to help the government in taking this type of strong decision for the development of the country.

Most preferable sectors for the investors are

Financial sector, pharmaceutical, FMCG

Investors are bearish towards the IT sector due to crisis all over the world, demand of IT product is decreased & infrastructure sector because of the lower demand